eBookJanuary, 5, 20223 min read

Is Shopify’s Fraud Tool Costing You Good Sales?

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Chapter 1

How many times
have you canceled a transaction that Shopify flagged as an elevated fraud risk, only to find out that it was perfectly legitimate?

How often
do customers call you asking why their order was declined, leading you to discover that Shopify falsely labeled it as fraudulent?

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Suppose you’re relying on Shopify’s free Fraud Analysis tool to protect your business from fraud. In that case, you may be surprised to learn just how error-prone their system truly is — and how much money, time, and headache it may be unnecessarily costing you and your customers.

NoFraud collected and analyzed data from over 10 million transactions that have gone through both Shopify’s and NoFraud’s fraud prevention systems and compared the accuracy of the decisions generated.

Chapter 2

23.8% NoFraud more “Pass”

Shopify High Risk
23.8% of all orders classified as “high risk” by Shopify received a “pass” by NoFraud, with a chargeback guarantee.

84.4% NoFraud more “Pass”

Shopify Medium Risk
A whopping 84.4% of all
orders that Shopify deemed “medium risk” were, in fact, safe to ship, backed by our chargeback guarantee.

56% Shopify more “Fail”

Shopify Footwear Industry
In the footwear industry alone, Shopify’s Fraud Analysis issued a wrong decision 56% of the time!

Stats broken down by industry

  • 56% Footwear
  • 36% Appliances
  • 35% Wigs & extensions
  • 35% Sporting goods
  • 28% Apparel
  • 23% Smoke & Vape
  • 23% Nutritional supplements
  • 21% Auto parts
  • 20% Audio equipment
  • 17% Cosmetics

Chapter 3

You may be wondering,
“How do these error rates truly affect my business?”

The truth is, a false decline can cause more harm than just the loss of profit on one order. A Javelin survey of 3,200 U.S. consumers revealed that 32% of respondents would not shop with a merchant again if that merchant previously declined their card.

In today’s competitive eCommerce landscape, precise fraud prevention is a must if companies want to retain a loyal customer base and generate repeat business. And, especially if you’re in an industry that is particularly susceptible to fraud, the sad reality is that Shopify’s free tool may be hurting you almost as much as it’s helping you.

Why is NoFraud better?


Shopify’s tool can be useful for identifying obvious fraud (IP proxy use, multiple card attempts, different billing & shipping addresses, etc.). However, their technology is not robust or up-to-date enough to address the increasingly complex methods fraudsters are using today. Moreover, Shopify requires you to manually review each flagged order while giving you only basic clues as to why the transaction may be illegitimate.

In contrast, NoFraud’s advanced technology: enables you to approve more valid orders with cutting-edge fraud detection saves you time by eliminating onerous manual review backs every “pass” decision with our 100% chargeback guarantee.

In other words, in the unlikely scenario that NoFraud did not catch a fraudulent charge that Shopify did, we’ll refund the chargeback in its entirety.

About NoFraud

Founded in 2014, NoFraud is an eCommerce checkout and fraud prevention pioneer, ensuring every eCommerce merchant has access to the services and protection they need to scale with confidence. The company provides online merchants with cost-effective, easy-to-use solutions that remove friction and fraud from their eCommerce funnel to grow sales and improve the purchase experience for customers. NoFraud provides the industry’s most accurate eCommerce fraud protection solutions to increase merchants’ conversion and approval rates while virtually eliminating fraud. Visit for more information.


Ready to learn more?

Book a demo and see our accurate real-time fraud screening for eCommerce in action.

Ready to learn more?

Book a demo and see our accurate real-time fraud screening for eCommerce in action.

We offer Starter Plans for even the smallest sized businesses, including a free plan and plans that include chargeback protection for companies that process less than $50,000/month.

Businesses that process more than $50,000 in revenue/month qualify for custom pricing. Book a demo and see our accurate real-time fraud screening for eCommerce in action.

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